Ulster Bank has introduced its first tracker bond for the personal investor which is linked to the overall ISEQ index. The new bond, called the Ulster Bank Special ISEQ Tracker, has, according to the bank, several innovative features not included as part of other tracker bonds. Among these is that the bond will be taxed at source at the special low rate of 10 per cent and investors will not then be subject to any further tax.

Another feature is that, after paying a 5 per cent initial fee, 95 per cent of the original investment will be invested in the special investment fund. On its fifth anniversary, the minimum return will be 95 per cent of the original investment, irrespective of stock market performance.